With so many different companies offering self directed solo 401k, also known as individual 401k or solo 401k, here’s how you determine which Solo 401k provider is the best for you.
Liberal Solo 401k Document
When looking for solo 401k providers, confirm that their Solo 401k plan allows for following:
- Investing in alternative investments such as real estate, precious metals, notes, etc.
- Participant loans—most solo 401k plans offered by brokerage firms such as Fidelity, TD Ameritrade or Schwab do not allow for participant loans.
Confirm Solo 401k Provider Offers Full Service at one low price
Even though when compared to other 401k types Solo 401k is relatively straight forward to administer, you should still find a Solo 401k provider that offers full service at one low fee. Services to look for are: 1)assistance in preparing annual Form 5500EZ, 2) Form 1099R, 3) preparation of participant or Solo 401k loan documents, 4)calculating annual solo 401k contributions, 5) interpreting solo 401k rules, 6) facilitation or review of alternative investments, 7)good customer service, 8)opened on Saturday, and 9) preparation of transfer/rollover forms.